Investors in the United Kingdom extended their retreat from equity markets in November, pulling billions of pounds from stock funds in what has become one of the most prolonged waves of selling in recent years. New data from Calastone shows that withdrawals reached about 3.0 billion pounds during the month, marking the sixth consecutive month of net outflows.
Since June, total redemptions from UK equity funds have climbed to roughly 10.4 billion pounds, close to 14 billion dollars. The sell off intensified in October when investors removed a record 3.6 billion pounds amid concerns about potential changes to the tax treatment of investments ahead of the national budget.
Trading activity suggests that selling continued through most of November. However, once the budget was delivered on November 26, outflows halted and modest buying activity emerged during the final days of the month.
Many investors shifted their money into money market products and fixed income instruments, signalling a preference for safer and lower volatility assets during a period of heightened uncertainty.
Calastone noted that the scale and persistence of the withdrawals are highly unusual and reflect growing caution among UK savers regarding fiscal policy, equity valuations and expectations for future market performance.
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